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Australia set for 50% wine import boost in China
Exports of Australian wine into China are expected to rise by 50% over the next three years, according to Weekly Times Now.
The rising affluence of China’s middle class has proved to be a promising opportunity for Australian wine producers. However, in order to capitalise on the boom, Australia should concentrate on producing wine for the premium end of the market, according to the National Australia Bank.
Dean Person, NAB’s head of industry analysis said that although the premium market in China was in its infancy, there is a huge potential for substantial growth.
“As China’s middle class continues to grow, so too should its demand for more premium products, including quality vintages that can’t be produced en masse locally,” said Pearson.
Imports of wines from EU countries has decreased sharply this year, according to Customs General Administration of China. It was estimated that a total of 20.61 million litres of wine were imported from EU this year, down by 27.9% compared with the same period last year.
However, import rates from Chile, Australia, the US, New Zealand and other non–EU countries is growing significantly. Especially Chile and Australia, which have the advantage of lower tariffs, and so are expanding market share rapidly in China.
I have been saying this for years! Living in China gave me much insight into the “real” market. We could easily ruin a good thing by charging in and doing what we did in the USA and UK. I hope the damage isn’t already done. Many Chinese people think Australian wine can’t be any good because its too cheap. Stop asking grape growers for cheaper prices so you can supply cheaper juice- it’s insane. Forget making up new dodgy brands and grow Brand Australia. China is already being dumped upon by Chile and Argentina and so on. We can’t compete down at those prices so walk away, leave it to those who can and keep pushing our much bigger message of blue skies, clean beaches, friendly people in the same time zone, luxury lifestyle image and prestigious wines to match. Think of the waves of Australian tourism growth borne from this once in a lifetime strategy. The next generation of Chinese wine lovers will already have brand loyalty for Australian wines and destinations in mind, long before they book their tickets. It takes guts to sell high end wine but one A on my report card is worth a million times more than five Ds.
And make sure we don’t dump high quality wines on the Chinese at budget prices and continue to rip off our local market. It can backfire – this week I had the pleasure of taking some China residents who had come to see where their wine was made around the Barossa – they were disappointed that they can buy Barossa wines cheaper in China than they are at Cellar Door here!